For Immediate Release
December 5, 2008

Contact: Judith Kargbo
(202) 225-3816

Washington, DC- Congresswoman Sheila Jackson Lee, senior Member of the House Judiciary Committee introduced H.R. 7297 “Emergency Automobile Industry American Jobs Protection Act of 2008.”  This legislation requires that any loan funds distributed to the “Big Three” automobile companies should be conditioned upon these companies filing a certification with the Congress. 

“Houston’s unemployment rate dropped below the national average in late ’89 and generally remained marginally below it well into ’92,” added Congresswoman Jackson Lee. “Over the past 15 years, the Houston unemployment rate has remained below the national average and trended downward until ’08. In ’08 both rates have trended upward as the nation has lost jobs and job growth in Houston has slowed.”

As of December 5, 2008 the national unemployment rate is a staggering 6.7%, resulting in more than 10.3 million people seeking jobs. However, due to Houston’s large labor force, October’s unemployment rate of 5.6 percent translates into more than 143,900 unemployed workers seeking jobs, which is less astounding than the national statistic of unemployed persons. 

“I introduced this legislation on November 20, 2008, when Congress first convened its lame duck session that will continue to keep America’s economy strong, ensure that jobs remain in America and that there is a definite plan for growth.  My legislation is aimed at stabilizing the American automobile industry jobs, dealerships, including women and minority-owned dealerships, and American automobile industry suppliers,” stated Congresswoman Jackson Lee.

The bill provides that before receiving loan funds, the “Big Three” must certify the following:

(1)  United States automobile jobs will not be decreased by relocation to foreign companies;

(2)  automobile dealership will benefit from the receipt of these loan funds, and that the “Big Three” shall further provide for the stability of such dealerships, including women and minority-owned dealerships; and

(3)  United States automobile suppliers will also be supported by and stabilized by such loan funding.

The bill also provides that no loan funds should be used by the “Big Three” to allow them to relocate overseas if it will result in loss of United States automobile industry jobs, dealerships, or suppliers.  Lastly, the bill provides that the loan funds should be distributed to the “Big Three” to ensure their stability and to establish a long-term plan of growth for United States automobile dealerships, including women and minority-owned dealerships, and United States automotive industry suppliers.

“As Houston struggles to recover from the damaging effect of Hurricane Ike, this dire situation is exacerbated by the current financial crisis affecting the nation.  As Congress moved forward to improve the first and second Emergency Economic Stabilization Act, I offered amendments to alleviate the economic pressures felt by the majority of Americans,” said Congresswoman Jackson Lee.

Congresswoman Jackson Lee has worked without ceasing to address America’s current economic crisis.  She offered the following amendments for “Emergency Economic Stabilization Act”, which distributed $700 billion to financial institutions to prevent a global financial crisis:

(1) Set aside $10 billion to be utilized by the Secretary of Treasury to restructure mortgages;

(2) Amend the Bankruptcy Code to permit bankruptcy judges to address the question of individual home mortgage restructuring;

(3) In the section on judicial review, there should have been language that specifically states that “the courts should be able to exercise their discretion to grant injunctive and/or equitable relief if the court determines that such relief would not destabilize financial markets”;

(4) Create a new, independent commission to exercise oversight;

(5) Permit corporate executives who might be convicted of criminal malfeasance in
the financial sector  from conducting financial business with the government for a period of seven (7) years; and

(6) Require foreclosure mitigation efforts.
           
In addition, to attempting to ensure that her amendments were included in the “Emergency Economic Stabilization Act,” Congresswoman Jackson Lee met with Assistant Secretary Neel Kashkari and other senior officials from the U.S. Treasury Department to understand how the Treasury Department would implement the legislation.  Congresswoman Jackson Lee worked so that small, women-owned, and minority financial institutions would also receive funding under the Act.

“Although this Administration has failed to act, I will continue to push this legislation forward and work to combat the financial crises occurring in the American economy, and aid automobile industry jobs, dealerships, and suppliers to continue to employ Americans and remain in the United States.  I work steadfast with the House Leadership to achieve these ends,” concluded Congresswoman Sheila Jackson Lee.

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